AdaptHealth(AHCO) - 2025 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 2025 was $820.3 million, an increase of 1.8% compared to $805.9 million in Q3 2024[6] - Organic revenue growth was 5.1%, the highest since Q1 2024, driven by solid underlying volume trends across four reportable segments[6] - Adjusted EBITDA for Q3 2025 was $170.1 million, reflecting a 3.5% increase from $164.3 million in Q3 2024[6] - Net revenue for the three months ended September 30, 2025, was $820,314, an increase from $805,858 in the same period of 2024, while net revenue for the nine months ended September 30, 2025, was $2,398,568, slightly down from $2,404,330 in 2024[27] - Operating income for the three months ended September 30, 2025, was $61,730, compared to $63,487 in 2024, and for the nine months, it was $164,152, down from $166,065 in 2024[27] - Net income attributable to AdaptHealth Corp. for the three months ended September 30, 2025, was $24,509, up from $22,859 in 2024, while for the nine months, it was $31,976, down from $40,160 in 2024[27] - Adjusted EBITDA for the three months ended September 30, 2025, was $170,056, representing an Adjusted EBITDA Margin of 20.7%, compared to $164,257 and 20.4% in 2024[36] Cash Flow and Investments - Free cash flow for Q3 2025 was $66,824,000, a decrease of 21.3% compared to $84,849,000 in Q3 2024[42] - Free cash flow for the nine months ended September 30, 2025, was $140,095,000, down 13.9% from $162,705,000 in the same period of 2024[42] - Net cash provided by operating activities for Q3 2025 was $161,066,000, an increase of 11.5% from $144,405,000 in Q3 2024[42] - Purchases of equipment and other fixed assets in Q3 2025 totaled $94,242,000, up 58.4% from $59,556,000 in Q3 2024[42] - For the nine months ended September 30, 2025, net cash provided by operating activities was $418,587,000, an increase of 6.9% compared to $391,424,000 in the same period of 2024[42] - Total purchases of equipment and other fixed assets for the nine months ended September 30, 2025, were $278,492,000, an increase of 21.7% from $228,719,000 in the same period of 2024[42] Debt and Equity - The company reduced debt by $50.0 million in Q3 2025, totaling a year-to-date debt reduction of $225.0 million, resulting in a net leverage ratio of 2.68x[6] - Total stockholders' equity increased to $1.62 billion as of September 30, 2025, compared to $1.58 billion at the end of 2024[24] Guidance - The company maintains its financial guidance for fiscal year 2025, projecting net revenue between $3.18 billion and $3.26 billion[7] - Adjusted EBITDA guidance for fiscal year 2025 is set between $642 million and $682 million[7] - Free cash flow guidance for fiscal year 2025 is projected to be between $170 million and $190 million[7] Assets and Impairments - Total assets as of September 30, 2025, were $4.38 billion, a decrease from $4.49 billion at the end of 2024[24] - The company reported a depreciation and amortization expense of $284,421 for the nine months ended September 30, 2025, compared to $274,797 in 2024[29] - The company experienced a goodwill impairment of $13,078 in the nine months ended September 30, 2024, with no impairment reported in 2025[29] User Engagement - Registered users of the myApp platform grew to 271,000, up from 118,000 in Q3 2024, indicating significant advancements in digital patient engagement[6]